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Digital Evolution

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Shailendra Tiwari, Head – Information Management, Nuvoco Vistas Corp and Chirag Shah, Head – Marketing, Nuvoco Vistas Corp.

In the continuously changing world of the Indian cement business, embracing new technology has become critical for increasing efficiency, monitoring cost and revenues, and assuring higher quality products. Automation, artificial intelligence and data analytics are all helping to make manufacturing processes run more smoothly, reduce downtime, and maintain high standards. For example, machine learning can anticipate when maintenance is required, IoT allows for real-time monitoring of equipment to prevent malfunctions, augmented reality is frequently utilised for safety training, and big data analytics assists in identifying and resolving production concerns with speed and accuracy.
Going digital is more than just implementing new technology. It also entails integrating it into all aspects of the organisation, from physical asset management to regulatory compliance. Those who accept these changes early on gain an advantage by sharing best practices and increasing value for all parties involved, propelling the sector towards a more efficient, sustainable and inventive future.
Nuvoco has maintained its commitment to digital transformation. Nuvoco chose not to just weather the storm but use it as a catalyst for transformation. The introduction of NuvoNirmaan, a contemporary Direct-to-Consumer (DTC) platform, exemplifies this mindset. NuvoNirmaan goes beyond traditional limits, providing a comprehensive digital platform that walks clients through each stage of the home-building process. From budget estimates to construction instructions to Vastus, this app exemplifies Nuvoco’s commitment to customer-centric solutions and establishes a new industry standard.

Digital strategies
Central to Nuvoco’s digital transformation journey is the Digitally Enabled Nuvoco (DEN) programme, a testament to the company’s proactive approach to addressing the evolving needs of stakeholders. Through strategic initiatives under DEN, Nuvoco has leveraged technology to elevate customer engagement.
One such project is the adoption of the SAP consumer Relationship Management (CRM)
system nomenclature as Nuvoco’s eXcellence Sales Assistant (NXSA), provides Nuvoco’s salesforce with actionable insights into consumer behaviour and preferences. This integration not only builds consumer connections but also enables interaction across all touchpoints.
Furthermore, Nuvoco has introduced a modern loyalty rewards program through mobile apps like ‘Vriddhi,’ ‘Milan,’ ‘Maitri,’ and ‘Nipun’ to cater to dealers, sub-dealers, and individual house builders. These apps are integrated with enterprise resource planning software, making transactions smoother and enabling real-time tracking of loyalty benefits.
Looking ahead, Nuvoco is still dedicated to leveraging cutting-edge technologies like Artificial Intelligence and Industry 4.0 to foster innovation and sustainability. As the industry advances, Nuvoco is set to lead the way, moving ahead toward a safer, smarter, and more sustainable future.
In short, Nuvoco’s digital transformation journey is more than a strategic requirement; it demonstrates the company’s vision, resilience, and dedication to customer-centricity. By adopting digitisation, Nuvoco has not only adapted to changing times but has also emerged as a cement industry innovator, setting new norms and redefining possibilities.

ABOUT THE AUTHOR
Shailendra Tiwari, Head – Information Management, Nuvoco Vistas Corp
spearheads digital initiatives, enhancing the synergy between technology and business strategy.

Chirag Shah, Head – Marketing, Nuvoco Vistas Corp, with over 20 years of experience builds marketing strategies for the brand.

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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